Govt to allow temporary reopening of Lafayette mineThe...

Govt to allow temporary reopening of Lafayette mine

The Philippines will allow Australia's Lafayette Mining Ltd. to temporarily reopen its zinc and copper mine for a test run after two cyanide spills in October, a government source said on Tuesday.

The source said the government will give Lafayette 30 days to test the mine on Rapu-rapu island, 350 km southeast of Manila.

Environment Secretary Angelo Reyes was due to announce his decision on Tuesday on a possible re-opening, which investors see as a litmus test of the government's pro-business credentials.

President Arroyo is pushing a revival of mining to bring in overseas investment and reduce poverty but has come under pressure from the powerful Bishops Conference of the Philippines to ban foreigners from 100 percent ownership of local mines.

A fact-finding commission, chaired by a bishop, issued a report in May on the environmental impact of the cyanide spills, calling for the permanent closure of Lafayette's operations and a moratorium on mining on Rapu-rapu island.

Lafayette, the first foreign firm to develop and run a mine in the Philippines in almost 40 years, hopes a test run will prove to the government that the company has beefed up procedures and pave the way for a permanent re-opening of the mine.